April 8, 2026 – When it comes to trust accounts, many lawyers discover that the disciplinary rules offer no section expressly titled “how to close an account.” Even so, the rules provide enough direction to make clear what must happen before the account is officially shut down.

Question

I have practiced law for almost 40 years as a solo and I am preparing to retire. I am informing clients and local courts, and will wrap up all my cases before my planned retirement date. I’ve also made arrangements with respect to my closed files and talked to my malpractice insurer about a tail policy.

The one thing I can’t seem to find any information about is taking the proper steps to close my trust account. I’ve looked at the disciplinary rules and can’t find anything.

What steps do I need to take to properly close my trust account?

Answer

SCR 20:1.15 is Wisconsin’s disciplinary rule that governs lawyer trust accounts. It is quite lengthy and detailed, but contains no section that specifically addresses closing a trust account.

That can be viewed as good news, in that the absence of explicit requirements means just that – there are no explicit requirements, so it must be simple.

While it is true that closing a trust account is a relatively simple matter, there are certain indirect requirements found in the disciplinary rules.

Account for All Funds in the Account

First, before closing a trust account, a lawyer must ensure that all the money in a trust account is properly accounted for and disbursed to the owner.

SCR 20:1.15(b)(1) requires that lawyers hold funds belonging to clients and third parties, separate from their own funds, in a trust account. SCR 20:1.15(e) requires lawyers to give prompt notice and delivery of funds in trust to clients and third parties.

Therefore, all funds held in a trust account must be properly disbursed to clients and third parties until the trust account balance is zero.

SCR 20:1.15(b)(3) provides an exception that permits lawyers to hold a small amount of their own funds in a trust account if necessary to pay account services charges. This may be unnecessary, as banks will sometimes permit any services charges to be drawn from the lawyer’s operating account. But if the lawyer does have a small amount of their own funds in the trust account, this should be accurately reflected in the lawyer's trust account records and withdrawn upon closing the account.

Often lawyers who call for advice will state that they cannot identify or locate the owner or purpose of some amount in the trust account. While, again, the black letter of SCR 20:1.15 provides no direct guidance, funds “abandoned” in a lawyer’s trust account fall under the jurisdiction of the state’s Unclaimed Property office, as discussed in this recent Ethical Dilemmas column.

So, when ownership of funds cannot be determined or the owner cannot be located, the lawyer should contact the Unclaimed Property office and follow their procedures to turn the funds over.

Ensure Records Are Full and Complete

Second, the lawyer must ensure that the trust account records are full and complete.

SCR 20:1.15(g) requires lawyers to maintain “complete” trust account records and that those records be preserved for at least six years after the date of the termination of the relevant representation. The lawyer therefore must ensure that records, whether in physical or electronic form, are preserved after the account is closed, as required by the rule.

Provide Notice to OLR

The last question concerns notice. Lawyers often assume that they are required to notify someone that they are closing a trust account, but that is not required by SCR 20:1.15.

That said, the Office of Lawyer Regulation (OLR) appreciates when lawyers send them notice that a trust account is closed. Travis Stieren, the trust account program administrator at OLR, states:

While the Rules do not require lawyers to file a notice when a trust account is closed, we ask that lawyers contact OLR so we can mark their trust account as closed in our database. The best way to do so is by sending us an email at olr.trustaccount@wicourts.gov.

There is no requirement that lawyers notify the State Bar that a trust account is closed.

That’s It

This leaves only following whatever steps the financial institution may require of the lawyer to close the account.

With these steps in mind, closing a trust account is relatively straightforward. Lawyers who are interested in other steps necessary to close a law practice may consult this recent Ethical Dilemmas column.